Alaska Legislative Update

Alaska Legislative Update

The Alaska legislature recently amended its laws governing mortgage licensing, effective January 1, 2017.

 

Alaska House Bill 12

 

An individual required to be licensed as a mortgage loan originator must:

  • Register with the registry and maintain a valid unique identifier issued by the Nationwide Multistate Licensing System and Registry (“NMLS”);
  • Work under either an exclusive contract for, or as an employee of, a mortgage licensee or an exclusive contract for a registered depository institution; and
  • Be sponsored in NMLS by a mortgage licensee under a sponsorship approved in NMLS by the Department of Commerce, Community, and Economic Development (“Department”) or be sponsored by a registered depository institution.  “Sponsored” means authorized to conduct business as a mortgage loan originator under the supervision of a mortgage licensee or a registered depository institution.

 

A depository institution may sponsor a mortgage loan originator if the depository institution is registered with the Department, has an exclusive written contract to sponsor a licensed mortgage loan originator, is otherwise in compliance with relevant laws, and satisfies all other requirements. Registration does not affect the exemption of the depository institution.

 

To register, a depository institution must:

  • Complete a registration form established by the Department; the form must identify the mortgage loan originator to be sponsored by the depository institution and each mortgage lending location of the registered depository institution; and
  • Pay a registration fee established by the Department.

 

Registration expires after one year. To renew a registration, the depository institution must file a renewal application with the Department and pay a renewal fee established by the Department.

 

The Department may deny an initial or renewal registration or may suspend or revoke the registration of a depository institution that is registered if the Department determines that the depository institution:

  • Failed to satisfy any requirement;
  • Failed to supervise its sponsored mortgage loan originator adequately; or
  • Made a material misstatement or withheld information on the application for registration, on an application for the renewal of the registration, or on another document required to be filed with the Department.

 

A registered depository institution must meet the same requirements as other mortgage licensees in regard to surety bonds, filing of reports, record-keeping, and out of state offices, and are subject to the same suspension, revocation and other remedies for wrong-doing that may be imposed by the Department.

 

A federal, state, or local government agency, including an agency that arranges or provides financing for mortgage loans, is now exempt from the mortgage lender or mortgage broker licensing requirements.